Tuesday, 25 October 2016
Last updated 14 min ago
May 13 2014 | 9:46am ET
A second man has pleaded guilty in a $96 million Long Island Ponzi scheme.
Adam Manson’s plea to conspiracy to commit securities fraud comes two weeks after his brother-in-law, Brian Callahan, admitted to defrauding investors in his hedge fund. A substantial chunk of the stolen money went to prop up a struggling resort the men owned in Montauk, N.Y.
Manson admitted he helped keep Callahan’s fraud going by lying to an auditor and providing falsified documents. He faces up to five years in prison as part of a plea agreement, and has agreed to forfeit $3.9 million, as well as the remaining unsold units at Panoramic View, which could be worth more than $60 million.
“Adam Manson assisted his brother-in-law Brian Callahan in orchestrating one of the largest Ponzi schemes in Long Island history by lying to independent auditors and lending institutions,” Loretta Lynch, the U.S. Attorney in Brooklyn, said. “We hope that the guilty pleas provide some measure of relief and closure to the defrauded investors.”
Manson will be sentenced on Oct. 3, two months after Callahan, who faces up to 40 years in prison on securities and wire fraud charges.